IRA Law Permits Tax-Free Distributions to Loras Through December 2013

10/8/2013

Donors who are age 70½ or older can make gifts to Loras and other charities directly from their IRAs without including the IRA withdrawal in their taxable income. This provision, available now through December 31, 2013, was passed into law as part of the American Taxpayer Relief Act of 2012. The legislation renews the law to allow donors who are age 70½ or older to make tax-free gifts to Loras and other charities directly from their IRAs through 2013. The maximum allowable limit is $100,000 per person.

Gifts may count toward a donor's required minimum IRA distribution for this tax year of 2013.

IRA gifts under the new law may be most appropriate for donors who:

Have a taxable estate and wish to avoid the “double taxation” of inherited IRAs.

Do not itemize their deductions on their tax returns.

Are subject to the Alternative Minimum Tax, or whose other tax deductions or exemptions are phased out because of high income.

This is not intended to be legal or tax advice. We encourage you to consult your own legal or tax advisor to see how you may be affected by the new law.

If you have questions, please call Eric Solberg, Director of Major and Planned Giving at 563.588.7969 or email Eric.Solberg@loras.edu.